Wolverine Worldwide plans new debt for purchase of Collective Brands

By Sara Rosenberg

New York, May 1 - Wolverine Worldwide has received commitments for debt financing to help fund its acquisition of Collective Brands Inc.'s Performance + Lifestyle Group for about $1.23 billion, according to a news release.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead banks on the debt.

Under the agreement, Collective Brands is being acquired for $21.75 per share in cash, or roughly $2 billion, including the assumption of debt, by Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital.

At close, Wolverine Worldwide will get Collective Brands' Performance + Lifestyle Group, which includes the wholesale and retail operations of the Sperry Top-Sider, Saucony, Stride Rite and Keds brands and will continue to operate out of Lexington, Mass.

Blum Capital and Golden Gate will get the operations of Payless ShoeSource and Collective Licensing International, which together will operate as a stand-alone entity. Payless will continue to be headquartered in Topeka, Kan., and Collective Licensing in Englewood, Colo.

Blum Capital and Golden Gate Capital have received a commitment for a revolving credit facility from Wells Fargo Capital Finance for the buyout.

Closing is expected late in the third quarter or early in the fourth quarter, subject to customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and Collective Brands' shareholder approval.

Wolverine Worldwide is a Rockford, Mich.-based marketer of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. Collective Brands is a Topeka, Kan.-based footwear and related accessories company.

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